AAX, expected to launch in H1 2019, will be the first digital asset exchange venue to use the Millennium Exchange matching engine. The implementation leverages the market leading technology, used across London Stock Exchange Group and other global client trading venues, as the basis for ATOM’s new digital asset exchange.

Peter Lin, CEO of ATOM Group said:“Trust is at the heart of ATOM’s philosophy and we are delighted to be working with LSEG Technology to deliver a core part of our new digital asset exchange. AAX will leverage LSEG’s Technology to deliver a world-class exchange that ensures safe, trusted and secure digital asset trading for all. The AAX exchange will allow investors to trade all major digital assets with greater levels of fairness, transparency, and performance.”

Ann Neidenbach, CIO, LSEG Technolog

Ann Neidenbach, CIO, LSEG Technology said:“We are delighted to have been selected by ATOM™ to provide a best-in-class technology solution to help power its new exchange. It underlines Millennium Exchange’s reputation for performance, scalability, flexibility and reliability and we look forward to working with the AAX team ahead of the launch in H1 2019.”

ATOM Group is a global fintech company based in Hong Kong with a focus on blockchain technologies and emerging digital assets.

London Stock Exchange Group (“LSEG”, “the Group”) today announces that Waqas Samad is appointed Group Director of the Information Services Division (“ISD”) and a member of the LSEG Executive Committee, effective immediately. He will report to David Schwimmer, CEO, LSEG.

As part of this planned succession and transition, Mark Makepeace will remain with the Group during 2019 and assume the role of Non-Executive Chairman, Information Services, in addition to his existing role as Non-Executive Chairman of LSEG in the Americas region. He will continue to report to David.

Donald Brydon, Chairman, London Stock Exchange Group

Donald Brydon, Chairman, LSEG said:“In addition to his contribution to LSEG, Mark has made a huge contribution to the evolution of indices and the development of the asset management industry. Having been chairman of FTSE in the 1980s and a party to his initial CEO appointment, I can truly say that he has more than exceeded everyone’s expectations at the time.”

David Schwimmer, CEO, LSEG said:“As the founder of FTSE and a founder and inaugural Chairman of the Index Industry Association, Mark has been a pioneer in the development of the global index industry. Mark has successfully built a world class global business with more than $16 trillion assets under benchmark to FTSE Russell Indexes. Under his leadership, the acquisition and integration of Russell Indexes, Mergent, TMX and Citi Fixed Income Indexes and The Yield Book have been transformative in expanding the global customer base and multi-asset capabilities of the business.”

“Mark also developed a strong bench of talent and Waqas Samad, who was recruited by Mark in 2016, is a natural successor to lead ISD, including FTSE Russell. Waqas will build on the existing strong business and proven strategy to continue to deliver on our growth expectations for this business. He will also bring his industry experience in indices and analytics across all asset classes to further develop the multi-asset and data analytics capabilities, as well as continue to deepen our customer partnership approach.”

Mark Makepeace, Group Director of Information Services; CEO, FTSE Russell and Non-Executive Chairman, LSEG Americas said:“Over the past thirty years, the index industry has gone through a period of transformative growth, playing an important role in the investment management process. I’m proud to have developed FTSE from a start-up to a global player active in more than 70 countries. FTSE Russell has been a pioneer in facilitating investment in emerging markets, including among the first to benchmark China A Shares, and has played a key part supporting investors’ increasing interest in Environmental, Social and Governance factors. I’m pleased to hand over the leadership of Information Services to Waqas to further develop it.”

Waqas Samad, CEO Benchmarks, FTSE Russell said:“I’m honoured to be asked to lead this important business area for the Group. Mark has built a fantastic franchise in FTSE Russell and it is well positioned to continue to benefit from the underlying global trends driving both passive and active investment management strategies globally. More broadly, the Information Services Division is a great platform and I look forward to further developing the Group’s customer partnership approach and delivering even greater value and analytical insights for our customers.”

2019 report identifies a new cohort of fast growing and dynamic private businesses across Africa

360 companies selected from 32 countries

Nigeria and Kenya lead the way as the countries with the most companies featured in the report

Exceptional growth rates reflected in featured companies’ CAGR of 46% revenue CAGR and average employee CAGR of 25%, over three years

23% of the companies are led by women, almost double the proportion reported in 2017

Consumer Services is the most represented sector with 79 companies – reflecting the growing middle class and the increasing importance of consumer products and services in African economies

Today, London Stock Exchange Group launches the second edition of its ‘Companies to Inspire Africa’ report, identifying and celebrating some of Africa’s most dynamic growth businesses. David Schwimmer, CEO, London Stock Exchange Group was joined by International Development Secretary Penny Mordaunt to welcome guests including the CEOs of featured companies, African government representatives, Africa-focused investors and trade groups to the Group’s London headquarters. Also in attendance were official partners to the report, the African Development Bank, Asoko Insight, CDC Group and PwC, together with sponsors Instinctif Partners and Stephenson Harwood.

International Development Secretary, Penny Mordaunt, said:

“Africa is going through a period of enormous change. Five of the world’s fasting-growing economies are African and by 2050 a quarter of the world’s population will live there. This growth presents unique opportunities for us all.

“The Companies to Inspire Africa report highlights the leading private companies operating in Africa, which have the most inspiring stories and the strongest growth potential.

“By combining African-led ambition with British expertise we can unlock investment and create more jobs for Africa and the UK. This is a win for Africa and a win for the UK.”

David Schwimmer, CEO, LSEG, said:

“London Stock Exchange Group’s ‘Companies to Inspire Africa’ report showcases inspirational and entrepreneurial businesses from across the African continent, representing a wide variety of industries and countries. It is particularly encouraging to see the increasing influence of women in leadership roles in these fast-growing companies, playing a pivotal role in shaping the future of African business.

These high growth companies have the potential to transform the African economy and become tomorrow’s job creators. At LSEG, we are committed to helping companies realise that potential and we are pleased to highlight and celebrate the company success stories behind one of the world’s fastest growing markets.”

“Through this partnership around Companies to Inspire Africa, we are joining efforts to build an information base to showcase African growth SMEs to a global investor audience. We also hope to encourage African enterprises to trade and invest with one another, create stronger value chains and expand into new markets. On behalf of the African Development Bank, I extend my congratulations to all the companies featured in this edition, along with our thanks to London Stock Exchange Group for the excellent collaboration on this important initiative.”

The ‘Companies to Inspire Africa’ report makes an essential contribution to closing this “middle market” gap. As a partner in the initiative, we have witnessed the enthusiasm among thousands of local corporates to set aside their reservations and share detailed insights into their promising businesses. Their participation sets the benchmark for transparency and performance in Africa’s corporate ecosystem, and will undoubtedly support accelerated investment into these exciting markets.”

Nick O’Donohoe, Chief Executive Officer, CDC Group, said:

“CDC Group has more than 70 years’ experience investing for growth in Africa so it’s a privilege to champion more than 360 high performing businesses recognised in today’s publication. These companies are led by some of the continent’s most dynamic management teams who are shaping the future of their industries.

CDC plays a large role in backing Africa’s most ambitious businesses. We were proud to invest $180 million in the continent’s largest independent fibre and cloud provider, Liquid Telecom, who will deliver broadband connectivity to support SMEs from Cairo to Cape Town.

With a further £3.5 billion to invest across Africa over the next three years, we plan to partner with many more strong management teams to help drive growth and prosperity through socially responsible business. We are thrilled to support the London Stock Exchange Group in highlighting the breadth of commercial talent and tenacity from Africa’s thriving business community.”

David Simonson, Managing Partner, Instinctif Partners, said:

“Working with the Companies to Inspire Africa 2019 is truly inspiring – they reflect the entrepreneurial energy and skills present across the African continent and across all sectors. Instinctif is proud of its long-standing role in advising African businesses on their positioning and communications with stakeholders in their home markets and internationally, and we are looking forward to supporting this year’s cohort of companies in CTIA 2019 as they build on their business success.”

Uyi Akpata, West Africa Regional Senior Partner, PwC, said:

“We are extremely honored to partner again with London Stock Exchange Group for the second ‘Companies to Inspire Africa’ report. At PwC, we view private businesses as a critical catalyst to job creation, economic growth, and innovation. Initiatives such as this help expose these companies to a global audience, and we hope will lead to further collaboration across border with London-based investors and strategic partners. It is also great to see the public sector represented here. It is an important testament to their commitment to supporting the private sector and continuing to drive improvements in ease of doing business.

We are also looking forward to hosting the Lagos launch, especially given Nigeria has the single largest representation with 97 of the 360 companies. We at PwC are committed to supporting private businesses, and applaud London Stock Exchange Group for this initiative.”

Tony Edwards, Partner and Head of Africa, Stephenson Harwood, said:

“The quality and diversity of the companies identified in this excellent report is striking and gives a great snapshot of the evolution of African business. As a leading international law firm, with a wealth of experience advising companies, entrepreneurs, banks and Governments in Africa and international businesses investing there, we are incredibly pleased to be a part of this initiative. It provides an opportunity both to recognise the achievements of African companies and entrepreneurs and to help them and others on the next stage of their journey.”

The 2019 report in numbers:

The 2019 report identifies 360 companies from 32 countries across the African Continent with 7 major sectors represented.

Revealing exceptional rates of growth amongst this year’s cohort, with average revenue Compound Annual Growth Rate (CAGR) at 46% and average employee CAGR at 25%, over three years, the report highlights the entrepreneurial and dynamic landscape of the African private sector.

Companies featured include small entrepreneurial businesses through to well-established corporations

23% of the companies are led by women, almost double the proportion in the 2017 report: Standout sectors where senior female executives are having a big impact are Healthcare & Education and Financial Services, with 39% and 31% are led by women CEOs; In Ghana, 10 out of the 20 companies featured are led by women

The fastest growing sectors are Financial Services and Renewable Energy with revenue growth rates of 70% and 66% respectively

Consumer Services is the most represented sector with 79 companies from 20 countries this year, reflecting the growth of sub-sectors such as Consumer Goods, Food & Beverages, Leisure & Tourism, Media and Retail, and the growing middle class in Africa

Agriculture remains an important sector for the continent with 53 companies, almost 15% of those featured

Nigeria (97) and Kenya (66) led the countries represented in the report this year

Nigeria further built on its leading position established in the 2017 Report with strong representation from the Industry and Technology & Telecom sectors

The East-West African axis dominates this year’s Report with 130 companies from Western Africa and 147 from Eastern Africa

The companies in this year’s report are creating significant employment opportunities across Africa with each company employing an average of 363 people

‘Companies to Inspire Africa 2019’ includes contributions from government including the UK Prime Minister, Theresa May; the President of Kenya, Uhuru Kenyatta; and Lord Boateng, former UK High Commissioner to South Africa.

The report was produced in partnership with African Development Bank Group, CDC Group, PwC and Asoko Insight who contributed their insight and expertise to select the featured companies, and the report is sponsored by Instinctif Partners and Stephenson Harwood.

A comprehensive searchable database of the report, along with a downloadable PDF of the publication is available at www.lseg.com/inspireafrica

The Board of Directors at London Stock Exchange Group (LSEG) has appointed Professor Kathleen DeRose as an Independent Non-Executive Director, effective immediately.

Her 30-year career in the capital markets industry, including executive roles at Credit Suisse, Deutsche Bank, and Chase Manhattan Bank, will prove much useful as LSEG aims to the top in its line of business.

Donald Brydon, Chairman of London Stock Exchange Group, commented:

“I am delighted to welcome Kathleen DeRose to the Board of LSEG. Kathleen brings extensive FinTech experience to the role as well as a strong background in asset management. Her understanding and knowledge of how global financial markets are adapting to new technology will be of great benefit to the Group as we continue to develop our business.”

Donald Brydon, Chairman, London Stock Exchange Group

DeRose is currently a Clinical Associate Professor of Finance at New York University’s Stern School of Business. There, she mainly focuses on financial technology curriculum, including FinTech corporate research projects and ecosystem building.

A board member and founding investor at Evolute AG, a Swiss wealth technology company, her past career includes roles as advisory member at Go Beyond Investing, Managing Director at Credit Suisse, Head of Portfolio Management and Research at hedge fund Hagin Investment Management, Managing Director at Bessemer Trust, Managing Director at Deutsche Bank, and Vice President at Chase Manhattan Bank.

Following a BA of American History from Princeton University in 1983, DeRose an MBA from New York University – Leonard N. Stern School of Business, and a Master’s Degree in Contemporary Chinese Studies from the University of Oxford, having won the Humphrey Ko prize for the best master’s thesis in 2015.

In November 2018, London Stock Exchange Group (LSEG) announced that Thomas K. (Tom) Dunlap has joined as Chief Data Officer (CDO) for its Information Services Division, which includes leading global index provider FTSE Russell.

In October 2018, LSEG entered into agreements with certain minority shareholders of LCH to acquire up to a further 15.1% of LCH’s share capital which is expected to take its majority ownership to over 80%, with a total cash consideration payable by LSEG to be up to a maximum of €438m.

Q3 reported revenue up 5% and total income up 8% to £522 million; on a like-for-like basis, excluding a £9 million year-to-date accounting change impact on adoption of IFRS15 in Capital Markets. Revenue would have been up 7% and total income up 9%

Underlines London’s status as a leading global financial centre and strong business & economic partner to Africa

Today, London Stock Exchange Group (LSEG) launches its series of reports on African capital markets, which were developed as part of its London Africa Advisory Group (LAAG). The reports will be launched at the African Investment Forum in Johannesburg. The five reports put forward recommendations on how African capital markets could be further developed to increase global investment flows. The reports were commissioned by LAAG following its series of meetings over two years with its members, Africa’s business leaders, policymakers and investors. The reports have been produced in conjunction with stakeholders in London and across Africa.

“I am delighted to announce the launch of LSEG’s series of reports on the development of African capital markets today. These reports are the result of work carried out over two years to deliver empirically grounded, actionable and Africa-specific policy recommendations.

“LSEG’s London Africa Advisory Group is designed to provide a platform for regular and collective dialogue through which to develop stronger relations with senior decision makers, regulators and business leaders across the continent. It is our intention that these recommendations offer practical advice and constructive solutions for supporting the development of Africa’s capital markets.”

Summary of key findings:

Developing the green bond market in Africa: Studies suggest Africa will be more severely affected by climate change than any other continent, which will require the continent to take advantage of green capital raising tools and sources of funding

Attracting passive investment flows to African markets: Passive investment flows are key to supporting depth of African capital markets; a key factor for this is country classification (Developed, Emerging or Frontier Markets) and flows could be enhanced through country classification upgrades

Developing offshore local currency bond markets in Africa: To sustain the continent’s strong GDP growth of the past two decades, substantial investment, particularly in infrastructure, is required; raising debt finance from larger offshore capital pools in local currencies is an attractive solution which mitigates an issuer’s currency risks associated with borrowing in hard currencies

The challenges and opportunities of SME financing in Africa: Small and medium-sized enterprises (SMEs) account for around 90% of Africa’s businesses, but experience a shortage of financing at all levels; these companies, which provide nearly 80% of the continent’s employment, can benefit from increased training and capacity building, a public register of companies, and supportive government policy

Trends in corporate information dissemination in Africa: Company news plays a central role in the efficient functioning of financial markets improving depth in securities trading; centralised regulatory information services and their distribution are therefore key in disseminating company news to the relevant stakeholders in a timely manner

Charities supported by LSEG Foundation focus on helping young people develop vital life skills

London Stock Exchange Group (LSEG) today celebrates LSEG Foundation Day across its global offices. As part of the event, LSEG will donate the equivalent of one day’s trading fees from our markets, London Stock Exchange, Borsa Italiana and Turquoise to charity. LSEG expects to donate in the region of £500,000 today. Distributed through the LSEG Foundation, the funds raised will help support a wide range of charities in the communities in which LSEG operates around the world. LSEG is also pleased to announce two new regional charity partners today, Crée Ton Avenir in France, and CAF Onlus in Italy.

David Schwimmer, CEO, LSEG

To mark the occasion in London, David Schwimmer, CEO, London Stock Exchange Group welcomed Mark Devlin, Chief Operating Officer, UNICEF UK and Fred Sharrok, Chair, School-Home-Support (SHS) to open trading on London markets this morning. They were joined by David Dickson, Executive Head of Eastbury Community School and students from the school. Eastbury Community School is one of the schools that LSEG employees have supported through SHS.

David Schwimmer, CEO, LSEG:“We are delighted to welcome two inspirational charities to open London markets. UNICEF, School-Home-Support and all the other charities the LSEG Foundation supports around the world are an inspiration to us all. Together with our customers and colleagues, we will continue to raise money and promote their important work with disadvantaged youth.”

Mark Devlin, Chief Operating Officer, UNICEF UK:“At UNICEF, we are delighted to be celebrating our partnership with LSEG, which has over the years supported us in providing clean water, nutritional supplements, and vital medicine to millions of children across the world. More recently, LSEG has been supporting a vital programme in Zambia to equip young women with the skills they need to build a career and get ahead in life. LSEG is also helping to keep children safe in emergencies through its support of UNICEF’s Children’s Emergency Fund. The continued commitment to improving lives of children around the world must be commended.”

At LSEG’s major offices in London, Milan, New York, Paris and Sri Lanka today, LSEG employees will be taking part in a number of activities to promote the work of regional and local charities including Crée Ton Avenir in France, and CAF Onlus in Italy, SLAPSW in Sri Lanka, School-Home-Support in the UK and City Harvest in the USA. Today also marks the 22nd anniversary of working with UNICEF, the Group’s global charity partner. During the past three years, LSEG has funded the Zambia Girls project as well as the Emergency Fund.

LSEG Foundation is focused on helping young people from disadvantaged background develop the life and business skills they need. As part of this commitment, a Group-wide volunteering policy was launched in 2016, encouraging LSEG employees to take up to two days off per year to volunteer for a charity of their choice.

Jaine Stannard, CEO, School-Home-Support in the UK:“School-Home Support’s partnership with LSEG has transformed our charity. The financial support provided by the LSEG Foundation has enabled us to develop the capacity to expand beyond London and enabled us to help vulnerable children in two key locations in the UK. In addition, LSEG’s talent has been directly involved, working with the children and families SHS support to raise aspirations, provide career guidance to young people and support parents to find employment. We’re looking forward to continuing to work together.”

Isabelle Andrieu, CEO, Crée Ton Avenir in France:“Crée Ton Avenir is delighted to have been selected by the LSEG Foundation as one of its partner charities for the next three years. Crée Ton Avenir’s mission is to help reduce the impact of a disadvantaged background on a student’s educational path and future career. This partnership will help Crée Ton Avenir broaden its scope to reach thousands more students; by helping them identify their core competencies and regain self-confidence, they will be armed with more options to navigate towards their future careers.”

Luisa Pavia, CEO, CAF Onlus in Italy:“We are delighted to have been chosen as LSEG’s regional charity partner in Italy. This three-year programme will support the work the charity does to help minors who are victims of mistreatment and sexual abuse, ultimately supporting young people to rebuild their lives. We are looking forward to working with the LSEG Foundation and LSEG’s staff in Italy.”

Tom Dunlap joins the Group as Chief Data Officer for Information Services

Newly created role will develop and lead global data strategy for rapidly growing business

Position underscores LSEG’s commitment to quality, integrity and speed of global data services

London Stock Exchange Group (LSEG) today announced that Thomas K. (Tom) Dunlap has joined as Chief Data Officer (CDO) for its Information Services Division, which includes leading global index provider FTSE Russell.

This newly created role will oversee the global acquisition, maintenance, management, governance and distribution of data used within LSEG’s Information Services Division, including FTSE Russell, for its various data services. Tom Dunlap will be responsible for developing and leading the division’s global data strategy; overseeing a global team across multiple sites, including integration of recent and future acquisitions; engaging with key global clients; and working collaboratively across LSEG’s business, operations and technology areas to drive future growth.

Dunlap will be based in the Group’s Fort Mill, South Carolina office and will report jointly to Mark Makepeace, CEO of FTSE Russell and Group Director of the Information Services Division, LSEG and Chris Corrado, Group COO and Group CIO, LSEG.

Mark Makepeace, CEO, FTSE Russell and Group Director, Information Services, LSEG:“I’m delighted to welcome Tom Dunlap to the Group as the new Chief Data Officer for Information Services. Data is key to our continued future growth as a global information services business. With nearly 30 years of financial services industry experience across a wide range of leadership roles in data management and operations, Tom will further develop and grow our data business in line with increased client demand.”

Chris Corrado – Group COO and Group CIO, LSEG

Chris Corrado – Group COO and Group CIO, LSEG:“We are focused as a Group on leveraging the power of our data capabilities for the benefit of our clients. I look forward to establishing a close working relationship with Tom and his team as we continue to build our capabilities in this important area.”

Tom Dunlap – Chief Data Officer, Information Services Division, LSEG:“I am incredibly excited to join such a strong global organisation in an important role to further develop the Information Services data business. I look forward to getting started working with the global team and developing our plan together going forward.”

Tom has nearly 30 years of financial services industry experience across a wide range of data management and operations leadership roles. Most recently, he was a senior consultant and advisor to Raymond James Financial and Lingotek on their enterprise data management and technology product expansion initiatives. Before that, he spent 18 years with Goldman Sachs in a variety of operations and data leadership assignments, most recently as managing director of operations and global head of the firm’s enterprise data strategy.

Underlines London’s status as a leading global financial centre and strong business & economic partner to Africa

Today, London Stock Exchange Group (LSEG) launches its series of reports on African capital markets, which were developed as part of its London Africa Advisory Group (LAAG). The reports will be launched at the African Investment Forum in Johannesburg. The five reports put forward recommendations on how African capital markets could be further developed to increase global investment flows. The reports were commissioned by LAAG following its series of meetings over two years with its members, Africa’s business leaders, policymakers and investors. The reports have been produced in conjunction with stakeholders in London and across Africa.

“I am delighted to announce the launch of LSEG’s series of reports on the development of African capital markets today. These reports are the result of work carried out over two years to deliver empirically grounded, actionable and Africa-specific policy recommendations.

“LSEG’s London Africa Advisory Group is designed to provide a platform for regular and collective dialogue through which to develop stronger relations with senior decision makers, regulators and business leaders across the continent. It is our intention that these recommendations offer practical advice and constructive solutions for supporting the development of Africa’s capital markets.”

Summary of key findings:

Developing the green bond market in Africa: Studies suggest Africa will be more severely affected by climate change than any other continent, which will require the continent to take advantage of green capital raising tools and sources of funding

Attracting passive investment flows to African markets: Passive investment flows are key to supporting depth of African capital markets; a key factor for this is country classification (Developed, Emerging or Frontier Markets) and flows could be enhanced through country classification upgrades

Developing offshore local currency bond markets in Africa: To sustain the continent’s strong GDP growth of the past two decades, substantial investment, particularly in infrastructure, is required; raising debt finance from larger offshore capital pools in local currencies is an attractive solution which mitigates an issuer’s currency risks associated with borrowing in hard currencies

The challenges and opportunities of SME financing in Africa: Small and medium-sized enterprises (SMEs) account for around 90% of Africa’s businesses, but experience a shortage of financing at all levels; these companies, which provide nearly 80% of the continent’s employment, can benefit from increased training and capacity building, a public register of companies, and supportive government policy

Trends in corporate information dissemination in Africa: Company news plays a central role in the efficient functioning of financial markets improving depth in securities trading; centralised regulatory information services and their distribution are therefore key in disseminating company news to the relevant stakeholders in a timely manner

London Stock Exchange Group plc (“LSEG”) announces that it is in the process of acquiring further shares in LCH Group Holdings Limited (“LCH”), which will increase its majority ownership of this valuable strategic business.

LSEG has entered into agreements with certain minority shareholders of LCH to acquire up to a further 15.1% of LCH’s share capital which is expected to take its majority ownership to over 80%, subject to the pre-emption process contained within LCH’s Articles of Association (the “Acquisitions”). The total cash consideration payable by LSEG will be up to a maximum of €438m (£384m)*. The Acquisitions will be funded from cash and existing debt facilities at closing and will be accretive to earnings following completion. Subject to regulatory non-objection, the Acquisitions are expected to close before the end of 2018.

The Acquisitions follow on from previous minority acquisitions by LSEG in late 2017 and early 2018, consistent with LSEG’s strategy of increasing its majority ownership while re-affirming its commitment to LCH’s customer partnership model with 14 minority shareholders remaining. The following LCH shareholders are selling shares but will retain minority shareholdings in LCH: Bank of America Merrill Lynch, Barclays, JP Morgan, Morgan Stanley and Societe Generale. The following LCH shareholders are selling their entire stakes in LCH: Borsa Istanbul, CFT & Viel & Cie, Commerzbank, Deutsche Bank, Nasdaq and Nomura.

* For reference, LCH’s profit after tax was €158m in 2017 and it has gross assets (net of balances with clearing members) of €1,625m.

Good LSEG Q3 results – growth across the Group including strong performances from LCH OTC clearing and FTSE Russell

Q3 reported revenue up 5% and total income up 8% to £522 million; on a like-for-like basis, excluding a £9 million year-to-date accounting change impact on adoption of IFRS15 in Capital Markets, revenue would have been up 7% and total income up 9%

Reported revenue up 9% and total income up 10% on a nine-month year-to-date basis (including effects of IFRS 15)

LSEG acquiring up to a further 15.1% stake in LCH Group, expected to take majority ownership to over 80%; completion targeted by end of Q4

Post Trade: LCH income up 15% (up 15% at constant currency), driven by 12% revenue growth in OTC clearing, with strong volumes at SwapClear and ForexClear also contributing to 49% growth in net treasury income

Capital Markets: like-for-like revenues up 2% (up 2% at constant currency); adjusting for IFRS 15, Capital Markets reported revenues are 8% lower than the comparative Q3 unadjusted period in the prior year

Commenting on performance in Q3, David Schwimmer, Chief Executive, said:“The Q3 results show continued momentum across the Group, reflecting another period of operational execution and investment in the business. Information Services and LCH both delivered good year on year growth. We also announced today that we are in the process of acquiring up to a further 15.1% stake in LCH, which is expected to take our majority ownership of this valuable strategic business to over 80%, reflecting our continued confidence in LCH’s opportunities for further growth as it develops its business in partnership with its customers.

“Since I joined LSEG in August my initial impressions of the Group’s strengths have been reinforced as I have spent time with our businesses and met with key stakeholders. The Group has world class assets, a strong financial position and a proven strategic approach. As today’s results show, we have a great platform from which to grow and develop further opportunities as we navigate the evolving economic and regulatory landscape ahead.”

Organic growth is calculated in respect of businesses owned for at least 9 months in either period and so excludes ISPS, The Yield Book and Citi Fixed Income Indices, MillenniumIT ESP and Exactpro. The Group’s principal foreign exchange exposure arises from translating our European based Euro and US based USD reporting businesses into Sterling.

Investment in growth opportunities and new developments continued across the business during the past quarter:

LSEG expected to increase its stake in LCH Group to over 80%, acquiring up to an additional 15.1% stake following reductions in holdings by a number of minority shareholders. Targeting completion before end Q4 2018

Financial positionThe Group’s financial position continues to be strong with a good level of funding flexibility in place. As at 30 September 2018, the Group had available committed facility headroom of c.£500 million having paid the interim dividend to shareholders and other normal course payment obligations. On a pro forma basis, assuming the acquisition of up to a further 15.1% stake in LCH Group for up to c.€438 million, the Group’s net debt:EBITDA would be towards the top end of our target leverage range, though should reduce quickly as the Group continues to generate strong cash flows.

Credit ratings are unchanged since 30 June 2018, with S&P maintaining a positive outlook around its A- long term rating of LSEG plc and its A+ long term rating of LCH Ltd and LCH SA. Moody’s rates LSEG long term A3 with a stable outlook.

The euro strengthened by 1% and the US dollar weakened by 6% against sterling compared with the same period last year. To illustrate our exposure to movements in exchange rates, a €0.05 change in the average Euro:Sterling rate would have resulted in a change to continuing operations total income of £2 million for Q3, while a US$0.05 move would have resulted in a £2 million change.

IFRS 15 accounting changeSince issuing its Interim Report on 2 August 2018, the Group has received clarification guidance from the IFRS Interpretations Committee (IFRIC) regarding the impact of adopting IFRS 15 on admission and listing services provided by the Group’s Primary Markets businesses within the Capital Markets segment.

On conversion to the new standard, with effect back dated to 1 Jan 2018, the Group now treats the initial admission and the continual and ongoing listing service as one performance obligation and recognises revenue from initial admissions and further issues over the period the Group has provided the listing service. In the majority of cases this is estimated to be between 4 and 11 years, dependent on the nature of the listing and the service provided. The net £9 million revenue reduction taken in Q3 reflects the impact for the 9 months year-to-date.

All new and further listing fees will continue to be billed and cash collected at the point when the service is first provided. Revenues deferred as at 1 January 2018 will result in a recovery of tax paid at the prevailing rate on adoption of IFRS 15 by means of a reduction in the corporation tax payable due to the relevant tax authorities. The Group will subsequently incur corporation tax charge as the deferred revenues from initial admission and further issue fees are recognised in the income statement.

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